Fluidigm Corp (FLDM) recently announced its preliminary fourth-quarter 2014 revenues. The company estimates revenues to surge 59.8% year over year to almost $33.4 million, which is slightly better than the Zacks Consensus Estimate of $33 million.
Organic revenues (excluding revenues from the DVS sciences acquisition made in Jan 2014) are estimated to be $25.2 million, up 20.1% from the year-ago quarter. Meanwhile, organic revenues are expected to soar 35% year over year to $24.7 million in the final quarter of 2014.
For full-year 2014, Fluidigm estimates revenues of approximately $116.4, up 63.5% from 2013 and is close to the higher-end of management’s guided range of $114–$117 million. However, the full-year estimates compare unfavorably with the Zacks Consensus Estimate of $117 million.
Organic revenues are estimated to be $95.9 million, which is much better than the management’s guided range of $95–$96 million. The upside reflects strong growth momentum across both production genomics and single-cell genomics applications.
We believe that significant product launches will propel further growth at the company. During the fourth quarter, Fluidigm announced a new single-cell application for its C1 system, which improves whole genome sequencing of individual cells.
Fluidigm also announced a new workflow that will facilitate high throughput single-cell mRNA sequencing at a lower cost. The high throughput workflow is enabled on the C1 Single-Cell Auto Prep System, which aids researchers in isolating, processing and profiling individual cells. The full commercial version of the workflow is expected to be available in the first half of 2015.
Apart from introducing new products, Fluidigm entered into collaboration with the Wellcome Trust Sanger Institute and the European Bioinformatics Institute (EMBL-EBI), to accelerate the development of new methods for analysis of single-cell genomics data.
As a result of these positive developments, fourth-quarter estimates have improved by 14 cents to stand at a loss of 42 cents, over the last 90 days. We note that the company’s bottom line has outperformed the Zacks Consensus Estimate by an average of almost 32% in the last four quarters.
Based on strong fourth-quarter and full-year 2014 projections, Fluidigm provided an optimistic 2015 revenue guidance. The company forecasts revenues in the range of $142–$149 million. However, the mid-point of the revenue guidance lags the Zacks Consensus Estimate of $147 million.
We believe that Fluidigm’s improving fundamentals, new product launches and partnerships will improve its competitive position against the likes of Affymetrix (AFFX), Illumina (ILMN) and Thermo Fisher Scientific (TMO).
Currently, Fluidigm carries a Zacks Rank #2 (Buy).
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